Woodward (WWD) versus Its Peers Critical Review

Woodward (NASDAQ: WWD) is one of 56 public companies in the “Industrial Machinery & Equipment” industry, but how does it compare to its competitors? We will compare Woodward to similar businesses based on the strength of its risk, analyst recommendations, earnings, dividends, valuation, institutional ownership and profitability.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Woodward and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Woodward 0 4 5 0 2.56
Woodward Competitors 390 1897 1909 36 2.38

Woodward currently has a consensus price target of $74.75, indicating a potential upside of 3.25%. As a group, “Industrial Machinery & Equipment” companies have a potential upside of 6.83%. Given Woodward’s competitors higher probable upside, analysts plainly believe Woodward has less favorable growth aspects than its competitors.

Volatility and Risk

Woodward has a beta of 1.21, indicating that its stock price is 21% more volatile than the S&P 500. Comparatively, Woodward’s competitors have a beta of 1.21, indicating that their average stock price is 21% more volatile than the S&P 500.

Profitability

This table compares Woodward and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Woodward 9.67% 16.12% 7.67%
Woodward Competitors 1.62% 7.91% 4.55%

Earnings and Valuation

This table compares Woodward and its competitors gross revenue, earnings per share and valuation.

Gross Revenue EBITDA Price/Earnings Ratio
Woodward $2.08 billion $342.57 million 22.84
Woodward Competitors $2.27 billion $360.82 million 23.20

Woodward’s competitors have higher revenue and earnings than Woodward. Woodward is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Dividends

Woodward pays an annual dividend of $0.50 per share and has a dividend yield of 0.7%. Woodward pays out 15.8% of its earnings in the form of a dividend. As a group, “Industrial Machinery & Equipment” companies pay a dividend yield of 1.6% and pay out 35.6% of their earnings in the form of a dividend.

Insider and Institutional Ownership

71.3% of Woodward shares are owned by institutional investors. Comparatively, 79.2% of shares of all “Industrial Machinery & Equipment” companies are owned by institutional investors. 5.9% of Woodward shares are owned by insiders. Comparatively, 5.4% of shares of all “Industrial Machinery & Equipment” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Summary

Woodward beats its competitors on 8 of the 15 factors compared.

About Woodward

Woodward, Inc. is an independent designer, manufacturer and service provider of energy control and optimization solutions. The Company designs, produces and services energy control products for various applications. The Company’s segments include Aerospace and Industrial. The Company’s Aerospace segment designs, manufactures and services systems and products for the management of fuel, air, combustion and motion control. The Company’s Industrial segment designs, produces and services systems and products for the management of fuel, air, fluids, gases, electricity, motion and combustion. The Company has production and assembly facilities in the United States, Europe and Asia and South America, and promotes its products and services throughout the world. The Company offers solutions for the aerospace, industrial and energy markets. The Company focuses primarily on serving original equipment manufacturers (OEMs) and equipment packagers.

Receive News & Ratings for Woodward Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Woodward Inc. and related companies with MarketBeat.com's FREE daily email newsletter.

Latest News

Leave a Reply